All Forum Posts by: Kam Ajani

@Harrison Barber I am local here in Columbus GA so if you need anything or just want to link up just reach out to me. We started wholesaling last year so we are also new but we always like networking with like minded people.

Joseph,

I am looking to get into Columbus. I have another group that meets once a month by Google Meet. We have coffee and talk for an hour. I would like to do a separate one with you (and some others looking at Columbus).

Hey @Kam Ajani

Just responded to your other post on the Atlanta market but wanted to also provide a little advice on analyzing deals.

Utilities and who pays will depend on your strategy. If you're just renting a SFH to a single family, typically they would put the utilities in their name and pay for them. Garbage may be something that you already pay through property taxes so make sure you check that. Lawn care is not considered a utility and most folks write leases that put the responsibility for lawn care on the tenant. However, this is up to you.

7% for CapEx is fine. Really that just depends on the age of the home and its systems after you purchase and/or renovate. If the home/systems are brand new, you could get away with 5%. If everything is really old and you replaced nothing before putting a tenant in, 10%+ is smart. Typically you'll be in that 5-10% range. Make sure you're also including another 5-10% for repairs/maintenance. Don't forget another 8-10% for vacancy and another 10% for property management.

Hope that all helps clarify your calculations a bit! Again, please feel free to reach out anytime if you have other questions or just want to chat!

Hey @Kam Ajani, welcome to the BP community!

The problem you are facing is one that just about every buy & hold investor in Atlanta is facing right now. While rents are ticking up, home prices have shot through the roof. This, coupled with raising interest rates, has made cash flow close to impossible to find anywhere in the Atlanta MSA. This is especially true if you're looking on the market and for relatively turnkey properties. If you do happen to find one, you'll find yourself competing with the other hundreds of investors (and homebuyers) who have seen the same property. Likely, the closing price won't end up being anything that would have produced cash flow..

However, there are still investors doing well in the buy & hold space here in Atlanta. These are the folks who are getting creative. Either in their strategy or in how they find deals. Have you thought of other ways to boost income beyond market rent? Or maybe developing a direct to seller marketing program of some kind, if you have the time. Essentially, the days of just doing the same basic strategy as everyone else to find cash flow are long gone. Now it takes creativity, time (yours or your team's) and patience. 

Hope this helps a bit! Please, feel free to reach out anytime if you have other questions or just want to chat.

Have you look into Norcross? I thought maybe Lawrenceville will have some options…. 

Hi Kam. I'm an investor and soon-to-be real estate agent in Pittsburgh, PA. Let me know if you'd like to talk! With your budget, you could probably get two cash-flowing single family houses (depending on the area) in Pittsburgh.